Q4 2013

City of Glendale
Sales Tax Update
First Quarter Receipts for Fourth Quarter Sales (October - December 2013)

Glendale SALES TAX BY MAJOR BUSINESS GROUP

In Brief $3,200,000

4th Quarter 2012

$2,800,000
Glendale’s allocation of sales and 4th Quarter 2013
use tax revenues from its Octo- $2,400,000
ber through December sales was
skewed by reporting anomalies in $2,000,000
the grocery and lumber-building ma-
terial categories. Actual sales activ- $1,600,000
ity was up 4.2% after these and oth-
er aberrations were factored out. $1,200,000

Generally solid holiday sales and $800,000

recent additions to the auto, de-
partment store and restaurant cate-
$400,000
gories contributed to the overall in-
crease.
$0
The gains were partially offset by General
Consumer
Autos
and
Restaurants
and
Business
and
Food
and
Fuel and
Service
Building
and
declines in fuel usage and pricing, Goods Transportation Hotels Industry Drugs Stations Construction
previous closeouts in the home fur-
nishings category and cutbacks in
purchases of business-industrial
goods and equipment Top 25 Producers REVENUE COMPARISON
Adjusted for aberrations, sales and In Alphabetical Order
use tax receipts for all of Los An- Allen Gwynn Lexus of Glendale Three Quarters – Fiscal Year To Date
geles County increased 1.7% over Chevrolet
Macys
the comparable time period while Apple
Marshalls 2012-13 2013-14
Southern California as a whole was Bloomingdales
Nordstrom
up 2.7%. Bob Smith Toyota
Pacific BMW Point-of-Sale $20,538,453 $21,197,724
Calstar Mercedes
Ralphs
Diamond Honda County Pool 2,470,237 2,495,348
Sears
Financial Services
Vehicle Trust Star Ford Lincoln
State Pool 9,444 12,530
Glendale Dodge Target
Chrysler Jeep Tesoro Refining &
Marketing Gross Receipts $23,018,133 $23,705,602
Glendale Nissan
Infiniti Toyota of Glendale
Glendale Subaru/ Scion Less Triple Flip* $(5,754,533) $(5,926,400)
Mitsubishi Video Equipment
Home Depot Rental

JC Penney Vons
*Reimbursed from county compensation fund

Published by HdL Companies in Spring 2014

www.hdlcompanies.com | 888.861.0220
 Q4 2013
Statewide Results
NOTES
Excluding accounting anomalies, the
local share of sales and use tax re-
ceipts from California’s 2013 holiday
spending rose 3.4% over the fourth
quarter of 2012.
Auto sales and leases and all cate-
gories of building and construction
materials were substantially up over
the previous year while tourism and
convenience-driven consumer de-
mand continued to produce healthy
gains in restaurant related revenues.
Sales of luxury goods and portable
electronics did particularly well while
cut backs in food stamp programs
and unemployment benefits reduced
spending at discount department
stores and many value oriented re-
tailers. Generally, the gains in sales
from online purchases were higher
than for brick and mortar stores.
Rising fuel efficiency resulted in low-
er receipts from service stations and
petroleum supply companies while
City of Glendale Sales Tax Update
of online ordering by consolidating
sales offices and inventories into just
ONLINE VS. BRICK & MORTAR
Year-Over-Year Percent Growth
a few locations.
30%
However, it was not until social net-
working and growth in the use of
mobile devices that the general public 15%
became fully comfortable with online
purchasing. Retail analysts expect
the trend to expand and every ma- 0%
jor retailer is testing new concepts to
reduce store size and overhead costs
by driving more of their sales to cen- -15%
tralized web-based order desks. '01 '03 '05 '07 '09 '11 '13
Online Brick & Mortar
New technology, recent court deci-
sions and legislative exemptions are
constantly reducing what is taxable REVENUE BY BUSINESS GROUP
and has substantially altered the base Glendale This Quarter
on which the tax was created in 1933.
The concentration of business sup- Cons.Goods Autos/Trans.
37% 25%
plies and now consumer goods into
fewer and larger “points of sale” has
accelerated competition for what is
becoming a diminishing resource.
Restaurants
Local governments are now bidding 12%
rebates up to 85% of the local tax Others
Fuel
Bus./Ind.
4% Food/Drug 8%
collected in exchange for location of 7% 7%

a slowing pace in solar and alternate order desks.

energy development reduced use tax
receipts from the business/industrial GLENDALE TOP 15 BUSINESS TYPES
segment. *In thousands Glendale County HdL State
Business Type Q4 '13* Change Change Change
Spending patterns were fairly consis-
tent throughout most regions. Auto Lease 294.7 0.4% 26.7% 29.0%
Casual Dining 406.1 17.3% 5.5% 5.7%
E-Commerce Spending Up Department Stores 733.2 22.6% 2.3% 1.6%
Tax receipts from holiday spending Discount Dept Stores —168.5 -4.9% —
CONFIDENTIAL -0.2% 0.1%

on general consumer goods at brick Electronics/Appliance Stores 352.8 6.4% 1.2% -0.7%
Family Apparel 540.1 6.2% 7.2% 6.8%
and mortar stores grew by 2.3% over
Grocery Stores Liquor 270.4 71.2% 99.0% 38.3%
last year’s comparable quarter while
Home Furnishings 124.1 -9.2% 6.1% 7.9%
local tax revenues from online pur-
Light Industrial/Printers 113.8 0.9% 2.3% 7.9%
chases increased 16% and accounted
Lumber/Building Materials 142.8 205.0% 342.4% 264.3%
for 10.3% of total general consumer New Motor Vehicle Dealers 1,390.7 5.8% 6.4% 9.4%
goods sales and use tax receipts. Quick-Service Restaurants 366.1 6.6% 6.5% 7.8%
The rise in online retail shopping ac- Service Stations 526.6 -0.6% -4.9% -2.7%

celerates trends that began 20 years Specialty Stores 265.6 10.6% 4.9% 7.7%
Women's Apparel 213.6 1.4% 5.9% 2.7%
ago by sellers of materials and equip-
ment to business and industrial users. Total All Accounts $7,695.5 6.7% 8.0% 8.7%
Suppliers were able to take advantage County & State Pool Allocation $984.5 2.2% 3.4% 9.4%

of business preferences for the ease Gross Receipts $8,680.0 6.2% 7.4% 8.8%